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Sugar: When Plan A and Plan B Agree

by Vadim Pokhlebkin
Updated: July 16, 2020

Elliott wave analysis allows you to shrink the infinite number of future possibilities down to just 2-3 probabilities.

What's more, you can rank those 2-3 probabilities from most likely (the preferred wave count) to least likely, a so-called alternate wave count.

Think of it as Plan A and Plan B for where your market goes next.

Sometimes, Plan A and Plan B disagree. Other times, while they may label the waves differently, both Plan A and Plan B ultimately suggest the same price outcome.

Such moments, of course, only add confidence to your analysis.

Watch our Commodity Junctures editor Jeffrey Kennedy explain more using the current price action in sugar.

Free, watch now

Skip "supply and demand" -- watch the waves instead

Ask most commodity investors what drives the trends, and they'll tell you -- supply and demand.

It's true: Supply and demand factors do matter. But not as much as most people think.

Often, what matters more is how investors interpret the changes in supply and demand. A bullishly minded investor will disregard sluggish demand and buy. A bearish commodity investor will see shrinking supply and say, "It's temporary."

In other words, commodity trends are driven by investor psychology... which unfolds in Elliott wave patterns...

...which makes commodity prices predictable.

Let us show you what this means in practice. For the next 30 days, 100% risk-free, test-drive our Commodity Junctures -- and see for yourself.

Euro Stoxx 50: Sentiment Hits “Bellringing” Extreme

This European sentiment measure was at an extreme for the better part of five years. Now, it appears the tide is turning. Be prepared! Optimistic or pessimistic extremes are usually followed by an extreme in the opposite direction.